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ESI stands for Employee State Insurance managed by the Employee State Insurance Corporation which is an autonomous body created by the law under the Ministry of Labour and Employment, Government of India. This scheme is started for Indian workers. Under this scheme, the workers are provided with a huge variety of medical, monetary and other benefits by the employer. Any Company having more than 10 employees (in some states it is 20 employees) who have the maximum salary of Rs. 15000/- has to mandatorily register itself with the ESIC.
Under this scheme, the employer needs to contribute an amount of 4.75% of the total monthly salary payable to the employee whereas the employer needs to contribute only 1.75% of his monthly salary every month of the year. The only exemption to the employee in paying his contribution is whose salary is less than Rs. 100/- per day.
The benefits of registering under this scheme are varied. Some of them are:
As per the government notification dated Sec 1(5) of the ESI Act the following entities are covered:
The documents required for the registration are –
1. A registration certificate obtained either under the:
a. Factories Act
b. Shops and Establishment Act
2. Certificate of Registration in case of Company, and Partnership deed in case of a Partnership
3. Memorandum of Association and Articles of Association of the Company
4. A list of all the employees working in the Establishment
5. PAN Card of the Business Entity as well as all the Employees working under the entity
6. The compensation details of all the employees
7. A cancelled cheque of the Bank Account of the Company
8. List of Directors of the Company
9. List of the Shareholders of the Company
10. Register containing the attendance of the employees
After collecting all the above-mentioned documents the following procedure is to be followed for the registration of the ESI:
a. Form No – 1 (Employers Registration Form) is to be downloaded and filled.
b. After downloading the PDF version of the form and filling it, it has to be submitted on the website itself along with the above-mentioned documents.
After the registration ESI Returns have to be filed twice a year. The following documents are required for the filing of the returns: